Siân Gwenllian MS, Cabinet Minister for Local Government, Housing & Planning
I am today confirming that the social rent uplift for next financial year will be 4%. This is in line with the Welsh Government Rent and Service Charge Standard 2026-2036 and the parameters set therein following the Office for National Statistics (ONS) publication of the September Consumer Prices Index (CPI) inflation rate of 3.5%.
I am content that this cap keeps affordability for tenants at the centre of our social rent policy whilst providing stability and certainty for social landlords to deliver on our Programme for Government commitments.
A safe, secure and good-quality home is fundamental to people’s health, education, sense of belonging and overall wellbeing. To achieve this, we must work collectively to invest in social housing to deliver 20,000 additional social homes, tackle homelessness and improve the quality, energy efficiency and sustainability of existing homes.
Meeting current and future housing need requires social rent policy to balance tenant affordability with the financial sustainability of social landlords. Predictable income enables landlords to maintain homes, provide essential services and invest in new and existing stock. Affordable rents, meanwhile, help sustain tenancies, support household wellbeing and stability, and give tenants greater certainty when budgeting.
I recognise that we continue to operate amid considerable economic volatility and uncertainty. High inflation, cost-of-living pressures and constrained public finances underscore the need to keep affordability central to rent-setting decisions. In this context I would stress that this is the maximum permitted annual increase, it is not an automatic uplift for social landlords to apply.
That is why, I will also be publishing a report setting out the findings from the Rent and Service charge Monitoring Returns submitted by social landlords. Its publication will support transparency and accountability across the sector and provide tenants, social landlords and wider stakeholders with a clear account of how the Standard is being implemented across Wales.
Affordability remains at the heart of the Rent Standard. Alongside it, the Welsh Government will continue developing an affordability framework to promote a consistent, transparent and sustainable approach to rent-setting across Wales.
Together, these measures will help keep rents affordable, strengthen the long-term resilience of the social housing sector and support delivery of the homes Wales needs.